Main Street Trust Announces Fourth Quarter 2004 Earnings and Other
Activities CHAMPAIGN, Ill., Jan. 28 /PRNewswire-FirstCall/ -- Main
Street Trust, Inc. (OTC:MSTI) (BULLETIN BOARD: MSTI) reported
earnings of $0.37 in unaudited consolidated net income per diluted
share for the quarter ended December 31, 2004, compared to $0.41
per diluted share for the same period in 2003. Consolidated net
income for the quarter totaled $3.562 million compared to $3.910
million for the same period in 2003. Unaudited consolidated net
income per diluted share for the year ended December 31, 2004
totaled $1.54 compared to $1.60 per diluted share for the year
ended December 31, 2003. Consolidated net income for the year
totaled $14.778 million compared to $16.605 million for the same
period in 2003. It should be noted that MSTI utilized approximately
$32.4 million of its capital in September 2003 to purchase treasury
stock. Van A. Dukeman, President and CEO stated that, "MSTI
earnings for 2004 declined slightly due to compression of our net
interest margin, one-time expenses associated with the merger/name
change of our subsidiary banks, The First National Bank of Decatur
and BankIllinois in the fourth quarter, and a decline in mortgage
banking fees. MSTI did post a 12% increase in Wealth Management
fees for the year; however, that increase did not offset the
decline in mortgage banking fees. Credit quality continues to be
excellent with the allowance for loan losses as a percentage of
non-performing loans at 432%. Also in the fourth quarter the
following other initiatives were achieved: -- Announcement of
proposed acquisition of Citizens First Financial Corporation
(approximately $327 million in total assets) headquartered in
Bloomington, Illinois. Subject to the necessary approvals, closing
is anticipated for early in the second quarter of 2005. -- Merged
all bank subsidiaries and adopted a single name and identity - Main
Street Bank & Trust -- Realigned Main Street Bank & Trust
into a line of business structure to encourage growth and
accountability -- Opened branch office in Peoria, Illinois area"
Cash Dividend Paid The Company distributed a $0.22 per share cash
dividend on January 28, 2005, payable to shareholders of record on
January 14, 2005. This is the fourth quarterly cash dividend
declared in 2004, and represents a 5% increase in the quarterly
dividend paid in January 2005. Franchise Main Street Trust, Inc. is
a diversified financial services company with $1.2 billion in
assets, providing financial services to more than 40,000 customers
at 18 locations in 15 communities in Central Illinois. Main Street
Bank & Trust offers online banking (
http://www.mainstreettrust.com/ ) and surcharge free ATM access at
78 locations throughout Illinois. In addition, Main Street Wealth
Management has $1.8 billion of financial assets under management
for individuals and institutions. Main Street Trust, Inc. also owns
a retail payment processing subsidiary, FirsTech, Inc., which
processes nearly 40 million items per year. On November 8, 2004,
Main Street Trust announced its plans to acquire Citizens First
Financial Corp. Main Street Trust filed with the Securities and
Exchange Commission, a registration statement on Form S-4 and other
relevant documents in connection with its merger with Citizens
First Financial Corp., including a proxy statement for use in
connection with a special meeting of Citizens stockholders that
will be held to approve the merger. CITIZENS STOCKHOLDERS ARE URGED
TO READ THE DEFINITIVE VERSIONS OF THESE IMPORTANT MATERIALS AND
ANY OTHER RELEVANT DOCUMENTS CAREFULLY BEFORE MAKING ANY DECISION
CONCERNING THE MERGER. These documents will be available free of
charge at the SEC's website, http://www.sec.gov/ . In addition,
documents filed with the SEC by Main Street will be available free
of charge from its Corporate Secretary at 100 W. University,
Champaign, Illinois 61824-4028, telephone 217-351-6500 and
documents filed with the SEC by Citizens will be available free of
charge from its Corporate Secretary at 2101 North Veterans Parkway,
Bloomington, Illinois 61704, telephone 309-661-8700. Condensed
Consolidated Balance Sheets (Unaudited, in thousands) December 31,
September 30, December 31, 2004 2004 2003 ASSETS Cash and cash
equivalents $64,928 $101,075 $75,903 Investments in debt and equity
securities 358,726 368,179 370,726 Mortgage loans held for sale
1,005 910 632 Loans, net of allowance for loan losses 761,227
726,310 666,259 Premises and equipment 17,087 17,065 17,622 Accrued
interest receivable 6,570 7,119 6,430 Other assets 18,575 18,940
16,602 Total assets $1,228,118 $1,239,598 $1,154,174 LIABILITIES
AND SHAREHOLDERS' EQUITY Liabilities: Deposits $974,577 $990,035
$898,472 Federal funds purchased, repurchase agreements and notes
payable 96,900 94,694 102,998 Federal Home Loan Bank advances and
other borrowings 29,882 29,902 29,980 Accrued interest payable
2,601 2,304 1,669 Other liabilities 10,183 9,735 9,605 Total
liabilities $1,114,143 $1,126,670 $1,042,724 Total shareholders'
equity 113,975 112,928 111,450 Total liabilities and shareholders'
equity $1,228,118 $1,239,598 $1,154,174 Consolidated Statements of
Income (Unaudited, in Quarter Ended: Twelve Months Ended:
thousands) December 31, December 31, December 31, December 31, 2004
2003 2004 2003 Interest Income: Loans and fees on loans $10,997
$9,919 $41,568 $41,467 Investments in debt and equity securities
Taxable 2,820 2,855 10,793 11,502 Tax-exempt 420 548 1,844 2,270
Federal funds sold and interest bearing deposits 261 84 600 447
Total interest income 14,498 13,406 54,805 55,686 Interest expense:
Deposits 3,783 3,233 13,972 14,070 Federal funds purchased,
repurchase agreements and notes payable 378 277 1,271 1,094 Federal
Home Loan Bank advances and other borrowings 407 403 1,609 1,559
Total interest expense 4,568 3,913 16,852 16,723 Net interest
income 9,930 9,493 37,953 38,963 Provision for loan losses 110 480
1,100 1,470 Net interest income after provision for loan losses
9,820 9,013 36,853 37,493 Non-interest income: Remittance
processing 1,566 1,899 7,201 7,211 Trust and brokerage fees 1,661
1,553 6,492 5,783 Service charges on deposit accounts 599 639 2,419
2,545 Securities transactions, net (6) 37 133 (12) Gain on sales of
mortgage loans, net 220 322 997 2,536 Other 530 654 2,605 2,231
Total non-interest income 4,570 5,104 19,847 20,294 Non-interest
expense: Salaries and employee benefits 4,911 4,352 18,889 18,245
Occupancy 701 642 2,669 2,489 Equipment 626 602 2,512 2,389 Data
processing 650 545 2,283 2,108 Office supplies 360 304 1,247 1,266
Service charges from correspondent banks 129 233 781 931 Other
1,545 1,228 5,498 4,913 Total non-interest expense 8,922 7,906
33,879 32,341 Income before income taxes 5,468 6,211 22,821 25,446
Income taxes 1,906 2,301 8,043 8,841 Net income $3,562 $3,910
$14,778 $16,605 SELECTED FINANCIAL HIGHLIGHTS Three Months Ended
Dec. 31, Dec. 31, Sept. 30, 2004 2003 2004 (dollars in thousands,
except share data) EARNINGS & PER SHARE DATA Basic earnings per
share $0.38 $0.41 $0.38 Weighted average shares of common stock
outstanding 9,448,657 9,496,069 9,460,495 Diluted earnings per
share $0.37 $0.41 $0.37 Weighted average shares of common stock and
dilutive potential common shares outstanding 9,554,364 9,621,600
9,573,370 Market price per share at period end(1) $29.00 $31.00
$31.00 Price to book ratio(1) 240.46% 264.28% 259.41% Price to
earnings ratio(1)(2) 18.59 19.14 19.75 Cash dividends paid per
share $0.21 $0.20 $0.21 Book value per share $12.06 $11.73 $11.95
Tangible book value per share(3) $12.06 $11.72 $11.95 Ending number
of common shares outstanding 9,448,990 9,500,369 9,448,323 AVERAGE
BALANCES Assets $1,239,921 $1,138,483 $1,228,605 Investment
securities 364,416 373,224 381,580 Gross loans(4) 751,631 661,123
732,227 Earning assets 1,156,435 1,053,279 1,139,861 Deposits
992,181 883,647 983,263 Interest bearing liabilities 943,950
861,618 940,782 Common shareholders' equity 113,616 110,332 112,386
END OF PERIOD FINANCIAL DATA Tax equivalized net interest income
$10,160 $9,790 $9,521 Gross loans(4) 771,882 676,677 737,183
Reserve for loan losses 9,650 9,786 9,963 Total assets under
management 1,764,562 1,514,142 1,647,398 PERFORMANCE RATIOS Return
on average assets(5) 1.14% 1.36% 1.15% Return on average equity(5)
12.47% 14.06% 12.58% Net yield on average earning assets(5)(6)
3.50% 3.69% 3.32% Interest spread(5)(6) 3.14% 3.36% 3.00% Net
overhead efficiency ratio(6)(7) 60.55% 53.21% 58.85% Non-interest
revenues as a % of total revenues(7)(8) 31.55% 34.80% 34.21%
Allowance for loan losses to loans 1.25% 1.45% 1.35% Allowance as a
percentage of non- performing Loans 431.57% 959.41% 369.55% Average
loan to deposit ratio 75.76% 74.82% 74.47% Dividend payout ratio(2)
54.49% 46.91% 52.83% ASSET QUALITY Net charge-offs $423 $387 $451
Non-performing loans 2,236 1,020 2,696 Other non-performing assets
33 55 185 Twelve Months Ended Dec. 31, Dec. 31, 2004 2003 EARNINGS
& PER SHARE DATA Basic earnings per share $1.56 $1.62 Weighted
average shares of common stock outstanding 9,481,034 10,242,929
Diluted earnings per share $1.54 $1.60 Weighted average shares of
common stock and dilutive potential common shares outstanding
9,594,148 10,359,836 Market price per share at period end(1) $29.00
$31.00 Price to book ratio(1) 240.46% 264.28% Price to earnings
ratio(1)(2) 18.59 19.14 Cash dividends paid per share $0.84 $0.70
Book value per share $12.06 $11.73 Tangible book value per share(3)
$12.06 $11.72 Ending number of common shares outstanding 9,448,990
9,500,369 AVERAGE BALANCES Assets $1,209,267 $1,126,660 Investment
securities 373,278 360,747 Gross loans(4) 722,030 655,225 Earning
assets 1,123,174 1,043,076 Deposits 958,611 861,720 Interest
bearing liabilities 918,963 833,250 Common shareholders' equity
112,968 131,080 END OF PERIOD FINANCIAL DATA Tax equivalized net
interest income $38,958 $40,201 Gross loans(4) 771,882 676,677
Reserve for loan losses 9,650 9,786 Total assets under management
1,764,562 1,514,142 PERFORMANCE RATIOS Return on average assets(5)
1.22% 1.47% Return on average equity(5) 13.08% 12.67% Net yield on
average earning assets(5)(6) 3.47% 3.85% Interest spread(5)(6)
3.14% 3.45% Net overhead efficiency ratio(6)(7) 57.74% 53.45%
Non-interest revenues as a % of total revenues(7)(8) 34.19% 34.26%
Allowance for loan losses to loans 1.25% 1.45% Allowance as a
percentage of non- performing Loans 431.57% 959.41% Average loan to
deposit ratio 75.32% 76.04% Dividend payout ratio(2) 54.49% 46.91%
ASSET QUALITY Net charge-offs $1,236 $943 Non-performing loans
2,236 1,020 Other non-performing assets 33 55 (1) Closing price at
end of period (2) Last 12-months earnings (3) Net of goodwill (4)
Loans include mortgage loans held for sale and nonaccrual loans (5)
Annualized (6) On a fully tax-equivalized basis (7) Does not
include securities gains/losses (8) Net of interest expense
DATASOURCE: Main Street Trust, Inc. CONTACT: Van A. Dukeman, CFA,
President and CEO, of Main Street Trust, +1-217-351-6568, Web site:
http://www.mainstreettrust.com/
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